Volcano Corp (VOLC) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

Exhibit 99.1

VOLCANO REPORTS 44 PERCENT INCREASE IN FOURTH QUARTER REVENUES

IVUS DISPOSABLE SALES GROW 29 PERCENT; FM DISPOSABLE REVENUES INCREASE 92 PERCENT

(SAN DIEGO, CA), March 3, 2010—Volcano Corporation (NASDAQ: VOLC), a leading developer and manufacturer of precision intravascular therapy guidance tools designed to enhance the diagnosis and treatment of coronary and peripheral vascular disease, said today that revenues for the quarter ended December 31, 2009, were $71.0 million, an increase of 44 percent versus revenues of $49.3 million in the fourth quarter a year ago. Revenues for the fourth quarter of 2009 included $5.8 million from Axsun Technologies, Inc., which Volcano acquired in the fourth quarter of 2008, and contributed $578,000 in revenues in the fourth quarter a year ago.

For the fourth quarter of 2009, the company reported a GAAP net loss of $12.1 million, or $0.25 per share, versus GAAP net income of $1.4 million, or $0.03 per diluted share, in the fourth quarter of 2008. Included in the results for the fourth quarter of 2009 are in-process research and development charges of $14.0 million resulting from milestones related to the CardioSpectra, Inc. and Novelis, Inc. acquisitions.

Excluding stock-based compensation expense of $2.7 million, the in-process research and development charges of $14.0 million and sales commissions of $2.3 million paid to a former distributor in Japan, Volcano reported non-GAAP net income of $7.0 million, or $0.14 per diluted share. In the fourth quarter of 2008, excluding stock-based compensation expense of $2.5 million and in-process research and development charges of $274,000, the company reported non-GAAP net income of $4.2 million, or $0.08 per diluted share. A reconciliation of the company’s GAAP to non-GAAP results is included below.

For all of fiscal 2009, Volcano reported revenues of $227.9 million, a 33 percent increase over revenues of $171.5 million in fiscal 2008. Revenues for fiscal 2009 included $17.9 million from Axsun, versus revenues of $578,000 in 2008. The company reported a GAAP net loss of $29.0 million, or $0.60 per share, in fiscal 2009, compared with a GAAP net loss of $13.7 million, or $0.29 per share, in 2008. Excluding stock-based compensation expense of $10.9 million, in-process research and development charges of $14.0 million and sales commissions of $3.7 million paid to a former distributor in Japan, Volcano reported a non-GAAP net loss of $347,000, or $0.01 per share, in 2009. Excluding in-process research and development costs of $12.7 million related to the Novelis and CardioSpectra acquisitions, stock-based compensation expense of $9.5 million and $2.9 million in due diligence, legal and accounting expenses related to an acquisition that was not consummated, Volcano reported non-GAAP net income of $11.4 million, or $0.23 per diluted share, in 2008.